Science Applications launches $1.24 billion credit facilities

By Sara Rosenberg

New York, Jan. 4 – Science Applications International Corp. launched on its call on Thursday $1,244,000,000 of senior secured credit facilities, according to a market source.

The facilities are split between a $401 million covenant-light term loan B due May 4, 2022, a $200 million revolver due Aug. 23, 2021 and a $643 million term loan A due Aug. 23, 2021, the source said.

Price talk on the term loan B is Libor plus 200 basis points to 225 bps with a 0.75% Libor floor and a par issue price, the source said.

Included in the term loan B is 101 soft call protection for six months.

Pricing on the revolver and term loan A is subject to a grid based on total leverage that ranges from Libor plus 125 bps to 200 bps with a 0% Libor floor. Old money is being offered an original issue discount of 5 bps and new money is being offered a discount of 20 bps.

The revolver and term loan A have a senior secured leverage ratio covenant of 3.75 times.

Incremental allowance is not to exceed the greater of $345 million and such other amount subject to pro forma senior secured leverage of 3.5 times.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, PNC Bank, SunTrust Robinson Humphrey Inc., U.S. Bank and Wells Fargo Securities LLC are the joint lead arrangers on the deal. Co-managers are MUFG, First Tennessee, SMBC, Capital One, J.P. Morgan Securities LLC and TD Securities (USA) LLC. Citigroup is the administrative agent.

Proceeds will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0.75% Libor floor, and an existing revolver and term loan A down from a grid that ranges from Libor plus 150 bps to 225 bps with a 0% Libor floor.

Cashless roll commitments for the term loan B are due at 5 p.m. ET on Jan. 11 and new money commitments for the term loan B are due at noon ET on Jan. 12. Commitments for the revolver and term loan A are due at noon ET on Jan. 18, the source added.

Closing is targeted for Jan. 26.

Science Applications is a McLean, Va.-based technology integrator providing full life-cycle services and solutions in the technical, engineering and enterprise information technology markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.